End of every month-centipede pattern=A rolling market gather's no profits

20060228 The FKLI trading community needs to reexamine why it takes 1 1/2 weeks to rollover 20K contract open positions. Maybe they should cooperate with each other (for the sake of the industry growth) to finish the unproductive rolls in 1 or at most 2 days. 

20060227 3:45 pm. After hours of grind, finally reaches the target (albeit small) from the upper trendline break.(925) 

20060224 10:35 am. Tough going fo rthe breakout to even reach 928.50 target. 

20060223 11:35 am. Coming up to test upper trendlines, might be potential for break out. Let's see what happens, time will tell. 

20060222 8:35 am. FKLI spot month 30 min chart shows a triangle pattern, indicating breakout could come either side. 

20060221 4:37 pm. Divergence trade in play. 1) Indicator/price divergence 2) Downtrendline break (which had to be adjusted) 3) Final resistance line break. 

20060221 9:20 am. Leong Hup Holdings (LHH) along with other recent high flyers are now tanking. We have seen all this before for example names like Repco, Hwatai, Gadang, Abric, Tanamas, Gensoil, LIPO, the list goes on and on. These are 'caveat emptor' or let the buyer beware stocks, the perfect setup of how the system sytematically takes money away from the unwary traders. And it doesn't just happen in Malaysia, look at TASR or GOOG as recent examples in the US stock markets. One clue on how to recognise that the end is nigh is to look for divergence. 

20060220 30 minute chart shows downtrend, but the move is slow, which gives clues to future movement potential. 

20060220 9:20 am. The turtle soup reversal identified on 15 Feb, took a while to play out.

20060216 Likewise Telekom Malaysia Berhad, another heavyweight is approaching its weekly trendline resistance. Break? Confirms the longer term uptrend in the KLCI. 

20060216 Tenaga Nasional Bhd, one of the heavyweights in the KLCI, shows it is on a weekly trendly breakout.

20060215 An example of a Turtle Soup reversal pattern occured in FKLI today.

20060215 9:34 am. Since the touch of the 8 period ema and the subsequent buy signal, 6 sessions later we see a nice move up. 

20060210 Longs taken from the 8 ema support would hve been a good swing trade by now. 

20060209 A bit of divergence and how reversals or non reversals can give clues to when to enter on retracement. 

• 2060208 We took some long positions at 920, the 8 ema support. What were the factors that contribute to this decision?
  
  Trend is up, Higher highs and lows.
  Prices were above all moving averages: Trend up.
  MACD is bullish.
  
  In trading, the objective is to find the low risk high probability entry, with return commensurate with the risk.

 

3 Traps not t fall into trading futures

I attended a dinner where an experienced trader I talked to was alluding to 3 traps most new and inexperienced traders fall into when trading futures that invariably cause them to blow up and sustain losses that cut short their trading careers:

1. Not believing the market price action
2. Fighting the market (trend)
3. Saying things like "The market is too high (low) . Its time to sell (buy). There is no reason for the market to go higher/lower.

Things that will help inexperienced traders in futures trading. Hope it helps.

20060206 Update on AMMB Holdings Bhd 

20060206 3:25 pm. The bands are another technique to enter a strongly trending market, like the current one. These are higher risk levels, but are earlier and more aggressive entries to take advantage of the trend. Bands are simply the 5 period ema of the high and lows. 

20060206 Lunch session break. For those who may be bulish on the Bursa stocks, what would be a good low risk high probability area to enter long positions in the FKLI? On the daily chart the area would be the the rectangular area of support on the chart above. This would represent the area where the impulse traders, who are correct on market direction (UP) but entered at the wrong price, most nptably those who buy heavily on breakout of the FKLI, are likely to place their stop orders. In an uptrend, the best place to enter would be on retracement. 

20060206 11:20 am. The cash KLCI Andrew's pitchfork is half complete. Next target is the upper prong trendline. 

20060203 4:16 pm. KLCI cash has reached the middle prong of the Andrew's pitchfork, indicates the first place to take profits on long fkli positions. 

20060203 3:30 pm. Kuala Lumpur Kepong Bhd (KLK) another big plantation stock and a foreign institutional favourite, shows where the money is flowing into. 

20060203 3:30 pm. Big plantation stocks IOICORP leads the Bursamalaysia stock market. An indication of the theme ahead? 

20060203 3:05 pm. Tenaga Bhd, a giant with big weightage in the CI, breaking out of the triangle pattern, targeting 11.80-12. 

20060203 3:02 pm. Sime Darby Bhd buiding up energy in a triangle pattern that looks like it could break to the upside, at the current moment in time. 

20060203 2:41 pm. Genting hits new high today, following from the breakout level RM21.50 we identified 5 weeks ago.